Wednesday, March 3, 2010

Tips For Dealing With Special Auto Insurance Situations

You must be knowing what auto insurance is meant for. Consumers seek auto insurance for their vehicles, may be a car, truck and the like. And what do you think it makes them do this. Well, they protect their vehicles against mishaps, robbery and any further loss incurred whatsoever. What's more auto insurance not only covers the insured party, the insured vehicle but even the third parties. You will find different policies speaking of different circumstances that determine the things to be covered.

Auto insurance has indeed become a must in today's context. Having a vehicle and doing away with auto insurance is like food without salt. No wonder, companies big or small are pouring in from all corners to make business out of it. When it comes to categorizing auto insurance, there are two types. As mentioned earlier, policies are poised according to the requirements of the policy buyers. Like for instance, there are policies that rope in bodily injury liability, property damage liability, medical payments, and collision and comprehension coverage due to the corporeal damage of the concerned vehicle.

Auto insurance policy is classified into five parts

The first thing that comes into being is declarations. All that this part of the policy holds is the personal information regarding the driver. Going into details, it must contain their name and address, vehicle ID number, make and model of the vehicle, policy number, duration and so forth. Moreover, it is pointed out here as to which type of coverage you have settled for and not to mention your policy confines and deductibles. Always remember that the insurance may go void if the information provided by you is untrue.

Next comes, coverage plans where the coverage confines such as liability, medical, collision and comprehensive are talked about. The fact of the matter is that this part of the policy delineates what you are deemed to get in return out of your insurance company.

What follows after that, is exclusions. This part gives a concise picture about the respective items uncovered as a result of your policy's restrictions. You will certainly know all that you need to know about your claim. And if that's not enough then you can also make necessary rectifications in the policy much to your convenience.

The fourth part in the policy is purely concerned with legality such as the legal obligations of the insurer as well as the insured. That's not the end of it; it also houses premium payment obligations, direction to settle disputes and ways to filing a claim.

Finally, the policy arrives to the fifth part: definitions. As the name suggests, here the terms and the privileges of the policyholder and the company are clearly delineated.

Auto insurance for vehicles on road is obligatory in quite a number of countries. The consequences of driving without insurance are not very pleasant. God forbid, if you are caught up in an accident, you will be legally accountable. You will not only have to foot the bill for the damages but also fall prey to a hefty financial penalty if you were driving without auto insurance. And let's not mention further dire consequences where your driver's license may even be freezed.

There are certain things that you should invariably keep in mind. You can avail an insurance coverage for your new automobile in the same lines if you already have an existing policy. But remember this has a limit of 14 days from the date of purchase. Did you ever know that getting married could affect your insurance rates? All that is required is the driving license of your spouse and the inclusion of her name in the policy. There are other factors also that have an influence on your existing insurance rates. And these could be anything from your age to driving experience and not to mention the duration of being a licensed driver. However shifting to a different province would bring some legal formalities into play.

In some cases where you are not able to pay for a new car, may go in for leasing and financing for that matter. But you will have to know whether it impinges on your insurance or not. All you need to do is go through your loan or leasing agreement. What it does is that it caters particulars about the auto insurance coverage that financial institution necessitates. Mind you, a lot of financial institutions stress on liability limits, which easily tops your state's least coverage necessities.

Again, having auto insurance coverage for your leased auto would imply that insurance companies would pay only the actual cash value instead of the value equivalent to the vehicle's replacement cost. The above said actual cash value would take account of the market value factoring in age, mileage, and wearing away for a vehicle.

When proving your claim comes to question, make sure that you are ready with all the citations. Now, the adjuster will jot down the written statement from you about the specifics and location of the accident, the names of witnesses and any medical treatment you received to say the least. And beyond all of that, you are also required to produce copies of every one of your medical bills, a medical account from your medical doctor and evidence of all other expenses. On top of that you may even be asked to sign an authorization. The thing is, all of these papers shore up your claim for special damages.

And once you are ready with the documentation, you will just be a few steps away from assessing your claim. Feel free to take in as much of time you think best to settle your claim or file a lawsuit. However, if you are puzzled as to what to demand, get hold of an auto accident attorney for proper guidance. Now, if you think that your claim has a strong hold then draft a "demand letter" to the insurance company stating the liability condition, the expenses that you had to do with, the medical treatments, the wounds and the rest of information that deserves a place.

You can never question the importance and relevance of auto insurance in the life of your automobiles.